REAL ESTATE—Maguire’s Search for Venture Partner Broadens

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Developer Robert Maguire’s search for a partner for his $1.6 billion real estate portfolio appears to have broadened beyond Equity Office Properties Trust.

MaguirePartners spokeswoman Peggy Moretti declined comment on the negotiations or which other bidders may have presented themselves, but she confirmed the developer is interested in bringing in partners. “We are exploring opportunities that will likely end up in a venture with an institutional investor,” she said.

Others familiar with the talks said that Crescent Real Estate Equities Co. of Dallas and Toronto-based TrizecHahn Office Properties are seeking at least a piece of the portfolio. Spokespeople for TrizecHahn Office Properties and Crescent Real Estate Equities declined to comment.

There is speculation that Maguire might be interested in divvying up his portfolio piecemeal. Moretti would not address that issue.

Because Equity is the largest real estate investment trust in the country and has a relationship with Maguire Partners at the planned Water’s Edge office complex in Playa Vista many still believe that the REIT remains a good bet to make a deal with Maguire.

Peter Adams, Equity Office Properties senior vice president for the Pacific region, did not return phone calls seeking comment.

Moretti denied suggestions that Maguire wants to unload his portfolio because of loan obligations on the downtown properties. There are no loan payments coming due that Maguire cannot pay, she said. Any transaction would keep Maguire involved in the properties, she added.

According to documents circulated last month to select parties by representatives for Maguire, the properties under discussion include four downtown high-rises: Library Tower (1.43 million square feet), Gas Co. Tower (1.37 million square feet), Wells Fargo Tower (1.43 million square feet) and KPMG Tower (1.14 million square feet). Also for consideration is the Plaza Las Fuentes complex in Pasadena (196,617 square feet of office space and a 350-room hotel). Another office building in Dallas reportedly is on the table, as well.

Moretti confirmed that Credit Suisse First Boston is Maguire’s advisor in the pursuit of a joint venture and attorney Paul Rutter of Santa Monica firm Gilchrist & Rutter remains MaguirePartners’ legal advisor.

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